Aspect, Pinnacle, Voicestream, more

DebraMcGarry

MichaelBaron

U.S. stocks to watch

Alteon WebSystems (ATON) shares jumped 10 percent in the evening session after the company said it achieved operating profitability three quarters sooner than expected as fourth-quarter revenue jumped 80 percent sequentially. The company said fourth-quarter revenue will come in at about $51 million, up 80 percent from the previous quarter. Alteon, however, also says it doesn’t expect to sustain the “very high percentage growth rate” in revenue the company saw during the quarter ended June 30, 2000. Alteon is slated to report quarterly results on July 20, 2000 after the market closes. Alteon shares rose 5 1/6, or 5.3 percent, to close at 100 15/16. Shares jumped 10 1/16 to 113 3 /4 in after-hours trading. See full story.

Aspect Communications’ (ASPT) shares dropped 50 percent after-hours. The company warned of lower-than-expected earnings in the range of 1 to 3 cents a share in the second quarter, compared to a loss of 18 cents in the year-ago quarter. The consensus analysts’ estimate is for a profit of 8 cents, according to First Call. Sales are expected between $137 million to $139 million. The company attributed the gloomy forecast to a shortfall in the level of business in one of the company’s North American regions, contract delays and a faster than expected slowdown in the company’s hardware platform business. The provider of customer relationship portals said it sees revenue in the range of $137 million to $139 million. Shares closed up 5/8 to close at 43 7/8 in the regular trading session and moved lower, down 21 1/8 to 22 3/4 on Island. See full story.

Cleco Corp. (CNL) said Monday its 750 megawatt Evangeline generating unit began full operations on July 8. The company has secured a 20-year tolling agreement with a unit of Williams (WMB), which will supply the fuel to the Evangeline plant and purchase and market the plant's output. Cleco expects nonregulated businesses to add to earnings this year. The company also said the Evangeline plant should add 25 cents to earnings in 2000 and 40 cents in 2001. Cleco shares closed Monday at 35 1/2, up 1.6 percent.

Identix Corp. (IDX) announced the launch of itrust, a wireless Web-based secure-transaction service. In addition, Motorola (MOT) agreed to invest $3.75 million in Identix. The companies also formed an alliance to jointly develop biometric-enabled products and services for itrust. Shares of Identix closed Monday at 19 3/8, up 14 percent.

Inso Corp. (INSO)agreed to sell its information exchange unit to IntraNet Solutions (INRS) for $55 million. Inso expects to record a gain of $38 million from the sale. IntraNet plans to integrate the unit’s products and technologies with its Xpedio Web Content Management product line. IntraNet expects the deal to add to earnings, notwithstanding acquisition costs and amortization of goodwill and intangibles. Inso shares closed Monday at 5 1/4, down 2.3 percent, while IntraNet finished at 38 1/2, up 0.3 percent.

International Speedway (ISCA) reported second quarter earnings of $3.7 million, or 7 cents a share, compared to a profit of $6.8 million, or 16 cents a share, in the same period a year earlier. Excluding items, the company earned $8.9 million, or 19 cents a share, in the latest three months, topping First Call’s average earnings estimate of 16 cents a share. However, International Speedway warned that poor attendance at a recent racing event will reduce third quarter earnings by 2 cents to 3 cents a share. Citing weak advanced ticket sales, the company said it plans to slow seat expansion for 2001. This decision has prompted International Speedway to cut its earnings guidance for fiscal 2001 to $1.64 to $1.66 a share, below current analyst estimates of $1.72 a share.

Intuit Inc. (INTU) agreed to acquire the remaining shares of Venture Software Corp., a Mountain View, Calif., Web technology firm. The final purchase price for the deal is based on a formula negotiated when Intuit made its original investment in Venture Software. Intuit expects to pay between $120 million and $150 million. Intuit shares closed Monday at 44 3/4, up 0.7 percent.

InVision Technologies (INVN) warned Monday that its second quarter will be wider than expected. Citing weak revenue due to hardware failures, the company said expects to report a loss of 15 cents to 20 cents a share. InVision said the hardware failures, which occurred during factory acceptance testing of several explosive detection systems by a key customer, will reduce second quarter revenue by $5 million. InVision shares closed Monday at 4 1/16.

Keane, Inc. (KEA) announced, after the market closed, that the company’s president John Keane, Jr. has resigned from his position to pursue interests in the field of wireless technology. Keane will remain a board member. Keane, Inc., a technical support services firm, closed off 1/4 at 22 11/16.

After the market closed, Krispy Kreme Doughnut (KREM) said that a number of company owned stores that were scheduled to close temporarily have stayed open and as a result, the level of sales growth in the early part of the year is not expected to continue beyond the second quarter. Ahead of the news, shares declined 6 3/8, or 8 percent, to close at 73 1/8 after a profile in this week’s Barron’s suggested the shares are overvalued. See full story.

After the market closed, Oak Hill Financial (OAKF) recorded second-quarter earnings of $1.8 million, or 34 cents a share, a penny below analysts’ expectations. In the same period a year earlier, the company made $1.8 million, or 33 cents a share. The community bank holding company closed off 3/32 at 13 29/32.

Paradyne (PDYN) announced, after the market closed, that investment and advisory firm Frank Russell Co. has added the company to the Russell 2000 and Russell 3000 indices. Paradyne develops high-speed network access products. Shares advanced 1 to close at 36 1/2.

Pinnacle Systems (PCLE) warned that fourth quarter operating earnings will come in between 6 cents and 8 cents a share, well below First Call’s average estimate of 16 cents a share. Sales are forecast at $62 million. The company attributed the shortfall to the quarter being significantly back-end loaded and the closing of some of this business on less favorable terms than anticipated. Shares of Pinnacle finished Monday at 22 5/8, down 1.6 percent.

Pitt Des-Moines (PDM) hired Tanner & Co. for advice on its strategic options, including the possible sale of the company. The stock closed Monday at 23, up 12.9 percent.

Reynolds & Reynolds (REY) said it expects third quarter earnings from continuing operations to come in line with Wall Street expectations. However, the company expects earnings from discontinued operations, which will include its recently-sold Carlyle Group, will come in 6 cents below second quarter results. Reynolds attributed the weaker results to lower sales, a customer bankruptcy, and an asset write-down from the divestiture of its Information Solutions unit. The company expects third quarter profits, including discontinued operations and one-time items, to come in at 31 cents a share. Reynolds & Reynolds expects to record additional charges from its ongoing reorganization in future quarters. Reynolds & Reynolds’ shares closed Monday at 17 1/4, down 1.4 percent.

Following the closing bell, Sanmina (SANM) announced that it has acquired a system assembly facility in China. The electronics contract manufacturing services company also announced the purchase of test facilities and related equipment from Nortel Networks (NT). The latter deal will expand Sanmina’s multi-year design services and supply contract with Nortel. Sanmina stock rose 7/8 to close at 91 7/8.

Santa Cruz Operation (SCOC) said it expects to report a third quarter loss of between 50 cents and 55 cents a share, significantly below last year’s profit of 13 cents a share, and wider than Wall Street expectations. Revenue is forecast within a range of $26 million to $28 million, well under last year’s $57.1 million. The company attributed the shortfall to slow sales channel recovery following Y2K and the delay of several large contracts. In addition, Santa Cruz hired Chase H&Q to evaluate its strategic options. Santa Cruz shares closed Monday at 5 11/16, down 5.2 percent.

ScanSoft (SSFT) said late Monday it will cut its workforce by roughly 20 percent with the majority of the 70 positions being eliminated at its Los Gatos, Calif., site. The company expects to record a second quarter charge of $2.5 million from the restructuring, which is forecast to reduce annualized expenses by between $10 million and $12 million. In addition, ScanSoft warned that it expects to report an operating loss in the second quarter due to a recent downturn in scanner sales and weak demand in Europe following integration difficulties and delayed product introductions. The company also lowered its revenue forecast for the second half of the year to $70 million on an annualized basis. ScanSoft closed Monday at 2 19/32, down 1.2 percent.

Selective Insurance Group (SIGI) said catastrophe losses related to storms in its Southern and Northeastern regions will reduce second quarter earnings by 10 cents a share. Further losses from storms not designated as catastrophes will reduce second quarter earnings by an additional 5 cents a share. While the pricing environment is improving, Selective said the lingering effects of competitive pressures in the industry have increased volatility in the company's results. The company said volatility has been most pronounced in workers' compensation, commercial automobile and property lines. Selective closed Monday at 19 1/8, down 0.6 percent.

Service Corp. International (SRV) warned that second quarter operating earnings will fall within a range of 7 cents and 10 cents a share, below First Call’s average earnings estimate of 13 cents a share. The company cited higher interest expenses, the negative impact of foreign currency fluctuations, higher costs from its trust administration business in North America, and increased technology expenses related to implementation of upgraded cemetery systems in North America. In addition, Service Corp. sold its insurance operations in France to with Mederic Assurances of France. The company expects the sale to generate cash proceeds of $75.1 million. The stock closed Monday at 3 1/4, down 1.9 percent.

Syncor International Corp. (SCOR) declared a 2-for-1 stock split. The split will be paid August 9 to shareholders of record July 26. Shares of Syncor closed Monday at 79 7/16, up 3.2 percent.

Voicestream Wireless (VSTR) is soaring in pre-market action on reports that Deutsche Telekom (DT) has made a $30 billion acquisition offer. Voicestream, which closed Monday at 124 15/16, recently changed hands at 152 on Instinet, up 27 1/16.

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